U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21642 / September 3, 2010
DISTRICT COURT ENTERS FINAL JUDGMENTS AGAINST DEFENDANTS JASON T. ROSE, DAVID G. ROSE, AND MARK LONG, AND RELIEF DEFENDANTS BRIAN C. ROSE AND JOYCE A. ROSE
SEC v. Berkshire Resources, L.L.C., et al., Civil Action No. 09-0704-SEB-JMS (S.D. Ind.)
The Commission announced that on September 2, 2010, the United States District Court for the Southern District of Indiana (the "Court") entered separate Final Judgments of against defendants David G. Rose, Jason T. Rose, and Mark Long, and relief defendants Brian C. Rose and Joyce A. Rose.
The final judgments against David Rose and Jason Rose enjoin each from violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 (the "Securities Act"), Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Exchange Rule 10b-5 and require David Rose to pay full disgorgement of $15,400,000.00, prejudgment interest of $205,846.67, and a civil penalty of $130,000.00, and Jason Rose to pay full disgorgement of $182,896.42, prejudgment interest of $4,298.12, and a civil penalty of $130,000.00. The final judgment against Long enjoins him from violating Sections 5(a) and 5(c) of the Securities Act, and Section 15(a) of the Exchange Act, and orders him to pay full disgorgement of $446.775.00, prejudgment interest of $13,537.73, and a civil penalty of $130,000.00. Relief defendant Brian Rose was ordered to pay full disgorgement of $431,517.32, plus prejudgment interest of $10,140.79. Relief defendant Joyce Rose was ordered to pay full disgorgement of $192,000.00 plus prejudgment interest of $4,512.06. Separately, David Rose, Jason Rose, and Mark Long have agreed to be barred from future association with any broker or dealer.
The Commission's June 8, 2009 complaint alleged that, among other things, from at least April 2006 through December 2007, the Roses used Berkshire to carry out an offering fraud and sell unregistered securities. Although Jason Rose was put forward as the public face of the company, his father, David Rose, who had an extensive disciplinary history, ran the company behind the scenes. The complaint further alleged that Berkshire raised approximately $15.5 million from approximately 265 investors in the US and Canada. The complaint also alleged that Berkshire misled defendants, among other things, about the use of investor proceeds, the experience of Jason Rose, David Rose's role at the company, and the expected rate of return. Additionally, the complaint alleged that Long, the head of sales at Berkshire, ran one of two "boiler room" operations that used teams of sales agents to sell units of participation to the public.
For Additional Information, see Litigation Release Nos. 21074 (June 9, 2009) and 21330 (December 10, 2009).